GRI Standard Title Disclosure Number Disclosure Title Individual disclosure items ('a', 'b', 'c', etc.) are not listed here Location Page Omission Statement UNIVERSAL STANDARDS ORGANIZATIONAL PROFILE General Disclosures 102-1 Name of the organization SR2018: OVERVIEW Front Cover; 2-3 General Disclosures 102-2 Activities, brands, products, and services SR2018: OVERVIEW AR2018: SABIC'S BUSINESSES & SABIC AT A GLANCE 2-3 General Disclosures 102-3 Location of headquarters SR2018: BACK COVER Back-cover General Disclosures 102-4 Location of operations AR2018: GLOBAL DIRECTORY 74-82 General Disclosures 102-5 Ownership and legal form AR2018: GLOBAL DIRECTORY 70-82 General Disclosures 102-6 Markets served AR2018: OUR CORE MARKETS 30-45 General Disclosures 102-7 Scale of the organization SR2018: OVERVIEW 2-3 General Disclosures 102-8 Information on employees and other workers General Disclosures 102-9 Supply chain General Disclosures 102-10 Significant changes to the organization and its supply chain SR2018: HUMAN CAPITAL DEVELOPMENT: OUR APPROACH AND PERFORMANCE 60-67 SR2018: SUPPLY CHAIN AND PROCUREMENT: OUR APPROACH AR2018: SUPPLY CHAIN General Disclosures 102-11 Precautionary Principle or approach TS2018: PRECAUTIONARY PRINCIPLE 22 General Disclosures 102-12 External initiatives 70-77 64-65 SABIC currently only reports on the percentage of women in the workforce & number of participants in learning programs SR2018: SUPPLY CHAIN AND PROCUREMENT: SUSTAINABLE PROCUREMENT 76 Description is throughout the SR2018 and the AR2018 SR2018: ETHICS AND COMPLIANCE SR2018: ABOUT THIS REPORT General Disclosures 102-13 Membership of associations 20-21 16-22 90 Saudi Vision 2030 The Business 20 (B20) Anti-Corruption Forum United Nations Global Compact World Economic Forum's Partnering Against Corruption Initiative Saudi National Anti-Corruption Commission (Nazaha) Pearl Initiative Responsible Care Plastics Industry Association American Chemical Council Arab Fertilizer Association Association of International Chemical Manufacturers The China Petroleum and Chemical Industry Federation World Business Council for Sustainable Development Alliance to End Plastic Waste (AEPW) STRATEGY General Disclosures 102-14 Statement from senior decision-maker SR2018: CHAIRMAN'S WELCOME 4-5 General Disclosures 102-15 Key impacts, risks, and opportunities SR2018: VICE CHAIRMAN AND CEO'S STATEMENT 6-7 Description of key sustainability impacts, risks and opportunities can be found throughout the content of this report and in Strategy. ETHICS AND INTEGRITY General Disclosures 102-16 General Disclosures 102-17 Values, principles, standards, and norms of behavior SR2018: ETHICS AND COMPLIANCE 20-21 https://www.sabic.com/en/about/sabic-codeof-ethics Mechanisms for advice and concerns about ethics SR2018: ETHICS AND COMPLIANCE 20-21 https://www.sabic.com/en/about/sabic-codeof-ethics Page 01 of 11
GOVERNANCE General Disclosures 102-18 Governance structure SR2018: SUSTAINABILITY GOVERNANCE 22 STAKEHOLDER ENGAGEMENT General Disclosures 102-40 List of stakeholder groups TS 2018: STAKEHOLDER ANALYSIS AND ENGAGEMENT General Disclosures 102-41 Collective bargaining agreements - - General Disclosures 102-42 Identifying and selecting stakeholders General Disclosures 102-43 Approach to stakeholder engagement General Disclosures 102-44 Key topics and concerns raised TS 2018: STAKEHOLDER ANALYSIS AND ENGAGEMENT TS 2018: STAKEHOLDER ANALYSIS AND ENGAGEMENT TS 2018: STAKEHOLDER ANALYSIS AND ENGAGEMENT 11-14 06-07 06-07 06-07 06-07 SABIC does not currently report the percentage of total employees covered by collective bargaining agreements but per Code of Ethics (p. 22), SABIC observes "all applicable labor and employment laws wherever we operate. That includes, wherever applicable, observing those laws that pertain to freedom of association, privacy, recognition of the right to engage in collective bargaining, the prohibition of forced, compulsory and child labor, and those laws that pertain to the elimination of any improper employment discrimination (including unlawful workplace harassment)." REPORTING PRACTICE General Disclosures 102-45 Entities included in the consolidated financial statements General Disclosures 102-46 Defining report content and topic Boundaries General Disclosures 102-47 List of material topics AR2018: CONSOLIDATED FINANCIAL STATEMENTS 11-128 SR2018: ABOUT THIS REPORT TS2018: REPORT BOUNDARIES SR2018: MATERIALITY REFRESH TS2018: MATERIALITY General Disclosures 102-48 Restatements of information TS2018: RESOURCE AND ENERGY EFFICIENCY 16 General Disclosures 102-49 Changes in reporting General Disclosures 102-50 Reporting period SR2018: MATERIALITY TS2018: REPORT BOUNDARIES SR2018: ABOUT THIS REPORT TS2018: REPORT BOUNDARIES General Disclosures 102-51 Date of most recent report SR2018: ABOUT THIS REPORT 90-91 90-91 05-06 04-05 04-05 90-91 5-6 This report does not include any corrections or restatements of information provided in previous reports. SR2018 does not reflect any significant changes in scope/ boundaries. Changes will be made in SR 2019. SABIC publishes its Sustainability Report annually. The Company published its most recent previous report in April 2018. General Disclosures 102-52 Reporting cycle SR2018: ABOUT THIS REPORT 90-91 SABIC reports on an annual basis General Disclosures 102-53 General Disclosures 102-54 Contact point for questions regarding the report SR2018: BACK COVER Back-cover To contact SABIC in relation to this report, at info@sabic.com Claims of reporting in accordance with the GRI Standards SR2018: ABOUT THIS REPORT 90-91 General Disclosures 102-55 GRI content index - General Disclosures 102-56 External assurance SR2018: ASSURANCE REPORT OF THE INDEPENDENT AUDITOR GOVERNANCE 91-92 SABIC's 2018 Sustainability Report follows the Global Reporting Initiative (GRI) Standards "In accordance-core" guidelines. The GRI Content Index information can be found: https://www. sabic.com/en/sustainability/corporate-reporting/gri-profile SABIC engaged KPMG to provide limited assurance on selected sustainability metrics. A copy of the KPMG Assurance Statement Addendum Independent Assurance Report. Page 02 of 11
ECONOMIC GRI 201: ECONOMIC PERFORMANCE Economic Performance 201-1 Economic Performance 201-3 Boundary SR2018: MATERIALITY management approach Direct economic value generated and distributed Defined benefit plan obligations and other retirement plans Economic Performance 201-4 Financial assistance received from government SR2018: MATERIALITY SR2018: SUSTAINABILITY GOVERNANCE AR2018: GOVERNANCE AR2018: OVERVIEW AND STRATEGY CFS2018: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SR 2018: MATERIALITY SR2018: INNOVATION AND SUSTAINABILITY SOLUTIONS: OUR APPROACH 22 53,54,64 10-18 7-108 26-27 CFS2018: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7-108 CFS2018: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TS2018: SABIC STRUCTURE 25 3 "Defined benefit plan obligations exist in many regions and vary considerably from country to country. SABIC meets its obligations in compliance with applicable legislation and regulation. SABIC is 70% directly owned by the Public Investment Fund (the PIF ), which is wholly owned by the Government of Saudi Arabia and does not receive direct financial assistance. GRI 202: MARKET PRESENCE Market Presence 202-1 Market Presence 202-2 Boundary SR2018: MATERIALITY management approach Ratios of standard entry level wage by gender compared to local minimum wage Proportion of senior management hired from the local community SR2018: MATERIALITY SR2018: SUSTAINABILITY GOVERNANCE AR2018: GOVERNANCE AR2018: OVERVIEW AND STRATEGY 22 53,54,64 10-18 SABIC seeks to pay a competitive wage in the regions where we operate. We comply with all applicable local minimum wage and overtime laws. In Saudi Arabia, SABIC has to meet "Saudization" targets set by the government. This translates into a high percentage of upper management there being local talent. Our overall Saudization rate for all employees in the KSA is over 90%. GRI 203: INDIRECT ECONOMIC IMPACTS Boundary SR2018: MATERIALITY SR2018: SOCIAL IMPACTS AND COMMUNITY RELATIONSHIPS: OUR APPROACH AND OUR PERFORMANCE 80-81 management approach Page 03 of 11
Indirect Economic Impacts 203-2 Significant indirect economic impacts SR2018: SOCIAL IMPACTS AND COMMUNITY RELATIONSHIPS: OUR APPROACH AND OUR PERFORMANCE TR2018: SUSTAINABILITY PERFORMANCE SUMMARY REPORTING 80-81 12 GRI 204: PROCUREMENT POLICIES Procurement Practices 204-1 Proportion of spending on local suppliers Boundary SR2018: MATERIALITY SR2018: SUPPLY CHAIN AND PROCUREMENT: OUR APPROACH AND OUR PERFORMANCE 70-71 management approach TR2018: SUSTAINABILITY PERFORMANCE SUMMARY REPORTING 12 While we do not currently report on spend on local suppliers, SABIC's Global Procurement group will review how to report on certain impact areas called out by GRI, including local spend. GRI 205: ANTI-CORRUPTION Boundary SR2018: MATERIALITY SR2018: ETHICS AND COMPLIANCE: HUMAN RIGHTS 21 Anti-corruption 205-1 Anti-corruption 205-2 Anti-corruption 205-3 management approach Operations assessed for risks related to corruption SR2018: ETHICS AND COMPLIANCE - COMPLIANCE INVESTIGATION DATA 20-21 Communication and training about anticorruption policies and procedures SR2018: ETHICS AND COMPLIANCE 20-21 Confirmed incidents of corruption and actions taken SABIC was not subject to any legal actions or governmental investigations for anti-corruption in 2018. GRI 206: ANTI-COMPETITIVE BEHAVIOR Boundary SR2018: MATERIALITY SABIC CODE OF ETHICS i Anti-competitive Behavior 206-1 management approach Legal actions for anti-competitive behavior, antitrust, and monopoly practices SABIC was not subject to any legal actions or governmental investigations for anti-competitive behavior in 2018. ENVIRONMENTAL GRI 301: MATERIALS Boundary SR2018: MATERIALITY Page 04 of 11
Materials 301-1 Materials used by weight or volume Materials 301-2 Recycled input materials used Materials 301-3 management approach Reclaimed products and their packaging materials SR 2018: ENGAGEMENT AND COLLABORATION SR 2018: ENGAGEMENT AND COLLABORATION We are actively working on renewable feedstocks, however we do not have a weight or volume numbers. We plan to have these numbers incorporated into our report in next two years. GRI 302: ENERGY Energy 302-1 Energy 302-3 Energy intensity Boundary SR2018: MATERIALITY management approach Energy consumption within the organization SR2018: ENERGY 42 SR2018: ENERGY SR2018: ABOUT SABIC: PERFORMANCE SUMMARY Energy 302-4 Reduction of energy consumption SR2018: ABOUT SABIC: PERFORMANCE SUMMARY 23 23 42 GRI 303: WATER Water 303-1 Water withdrawal by source Water 303-2 Boundary SR2018: MATERIALITY management approach Water sources significantly affected by withdrawal of water Water 303-3 Water recycled and reused SR2018: WATER SR2018: ABOUT SABIC: PERFORMANCE SUMMARY 23 43 SABIC s largest sources of water are the Arabian and Red seas, and large rivers within Americas and Europe that are used by multiple industries. Therefore, we have not prioritized detailed reporting on this indicator. SABIC has chosen to measure and set targets on fresh water usage and does not compile data on water recycling and re-use. All of our chemical operations use recycled water, and our water use intensity goal encourages maximization of water recycling and re-use. Our Saudi based operations were designed to use seawater for cooling and to recycle this water where possible GRI 305: EMISSIONS Boundary SR2018: MATERIALITY Page 05 of 11
management approach Emissions 305-1 Direct (Scope 1) GHG emissions SR2018: GREENHOUSE GAS 40-41 Emissions 305-2 Energy indirect (Scope 2) GHG emissions SR2018: GREENHOUSE GAS 40-41 Emissions 305-4 GHG emissions intensity Emissions 305-5 Reduction of GHG emissions SR2018: GREENHOUSE GAS SR2018: ABOUT SABIC: PERFORMANCE SUMMARY SR2018: GREENHOUSE GAS SR2018: ABOUT SABIC: PERFORMANCE SUMMARY 23 40-41 23 40-41 GRI 306: EFFLUENTS AND WASTE Effluents and Waste 306-1 Water discharge by quality and destination Effluents and Waste 306-2 Waste by type and disposal method Effluents and Waste 306-3 Significant spills Effluents and Waste 306-4 Transport of hazardous waste Boundary SR2018: MATERIALITY management approach SR2018: MATERIAL LOSS SR2018: SUSTAINABLE SUPPLY CHAINS SR2018: ENVIRONMENTAL RELEASES AND EMISSIONS MANAGEMENT SUPPLY CHAIN AND PROCUREMENT: A SUCCESSFUL EMERGENCY RESPONSE: SEVERE STORM RESULTS IN PLASTICS SPILL IN SOUTH AFRICA 16-17 44 72-75 53 74-75 SR2018: RISK AND EMERGENCY RESPONSE MANAGEMENT 52-53 Priority has been given to measuring and making progress on water usage rather than on discharge, therefore data are not available across all our global sites for reporting. We plan to address this gap in next two years. GRI 307: ENVIRONMENTAL COMPLIANCE Environmental Compliance 307-1 Boundary SR2018: MATERIALITY management approach Non-compliance with environmental laws and regulations In 2018, the total amount of all monetary penalties assessed against SABIC for alleged non-compliance with environmental laws and regulations was less than $500,000. In 2018, SABIC received 17 notices from regulatory agencies alleging noncompliance with GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT Boundary SR2018: MATERIALITY SR2018: SUPPLY CHAIN AND PROCUREMENT: OUR APPROACH AND OUR PERFORMANCE 70-71 Page 06 of 11
Supplier Environmental Assessment 308-1 Supplier Environmental Assessment 308-2 management approach New suppliers that were screened using environmental criteria SR2018: SUSTAINABLE PROCUREMENT 76 Negative environmental impacts in the supply chain and actions taken SR2018: SUSTAINABLE SUPPLY CHAINS 72-75 SABIC s supplier screening process is in place with the goal to screen all suppliers going forward. Nearly 100% followed this process in 2018. SOCIAL GRI 401: EMPLOYMENT Boundary SR2018: MATERIALITY SR2018: HUMAN CAPITAL DEVELOPMENT: OUR APPROACH AND PERFORMANCE 60-61 management approach Employment 401-1 New employee hires and employee turnover SABIC does not disclose this information externally. Employment 401-2 Employment 401-3 Parental leave Benefits provided to full-time employees that are not provided to temporary or part-time employees SABIC is a diverse global company and provides benefit packages in compliance with applicable country-specific regulations. It is our goal to provide competitive benefit packages compared to the industry standard. Because of differences across countries, SABIC does not track this information in a way that allow for consistent global reporting. SABIC complies with relevant legislation, regulation and standard practices. GRI 403: OCCUPATIONAL HEALTH AND SAFETY Occupational Health and Safety 403-1 Occupational Health and Safety 403-2 Boundary SR2018: MATERIALITY SR2018: EHSS AND PRODUCT SAFETY: GOVERNANCE AND OPERATING RHYTHM 48 management approach Workers representation in formal joint management worker health and safety committees SR2018: EHSS AND PRODUCT SAFETY: GOVERNANCE AND OPERATING RHYTHM 48 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities SR2018: CULTURE OF CONTINUOUS IMPROVEMENT 50-51 GRI 404: TRAINING AND EDUCATION Boundary SR2018: MATERIALITY SR2018: HUMAN CAPITAL DEVELOPMENT: OUR APPROACH AND PERFORMANCE 60-61 management approach Page 07 of 11
Training and Education 404-1 Training and Education 404-2 Training and Education 404-3 Average hours of training per year per employee SR2018: HUMAN CAPITAL DEVELOPMENT; OUR APPROACH AND PERFORMANCE 60-61 Programs for upgrading employee skills and transition assistance programs SR2018: OUR WORKFORCE 52-58 Percentage of employees receiving regular performance and career development reviews SR2018: OUR WORKFORCE 64 Employee performance reviews are incorporated into our performance based approach but details are not disclosed externally. GRI 405: DIVERSITY AND EQUAL OPPORTUNITY Diversity and Equal Opportunity 405-2 Boundary SR2018: MATERIALITY SR2018: HUMAN CAPITAL DEVELOPMENT: OUR APPROACH AND PERFORMANCE 60-61 management approach Ratio of basic salary and remuneration of women to men We do not report on this Aspect because we do not collect information to this level of detail or report it externally at this time. GRI 406: NON-DISCRIMINATION Boundary SR2018: MATERIALITY SABIC CODE OF ETHICS i Non-discrimination 406-1 management approach Incidents of discrimination and corrective actions taken TS2018: ETHICS AND COMPLIANCE 7-9 GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING Freedom of Association and Collective Bargaining 407-1 Boundary SR2018: MATERIALITY SABIC CODE OF ETHICS: FAIR EMPLOYMENT PRACTICES SABIC SUPPLIER CODE OF CONDUCT: FAIR EMPLOYMENT 20-21 76 management approach Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk SR2018: SUSTAINABLE PROCUREMENT 76 GRI 408: CHILD LABOR Child Labor 408-1 Boundary SR2018: MATERIALITY SABIC CODE OF ETHICS: FAIR EMPLOYMENT PRACTICES management approach Operations and suppliers at significant risk for incidents of child labor SR2018: SUSTAINABLE PROCUREMENT 76 21 Page 08 of 11
GRI 409: FORCED AND COMPULSORY LABOR Boundary SR2018: MATERIALITY SABIC CODE OF ETHICS: FAIR EMPLOYMENT PRACTICES 21 Forced or Compulsory Labor 409-1 management approach Operations and suppliers at significant risk for incidents of forced or compulsory labor https://www.sabic.com/en/about/code-of-ethics SABIC s procurement contracts contain language on our fair employment practices policy and suppliers are asked to adhere to our Code of Conduct. SABIC codes and policies are included in all our business dealings, including acquisitions and joint ventures. GRI 410: SECURITY PRACTICES Security Practices 410-1 Boundary SR2018: MATERIALITY SR2018: EHSS AND PRODUCT SAFETY: RISK AND EMERGENCY MANAGEMENT: SECURITY MANAGEMENT 53 management approach Security personnel trained in human rights policies or procedures https://www.sabic.com/en/about/code-of-ethics SABIC's security personnel are required to adhere to our Code of Ethics as part of their contract. GRI 412: HUMAN RIGHTS ASSESSMENT Boundary SR2018: MATERIALITY SR2018: ETHICS AND COMPLIANCE: HUMAN RIGHTS 21 Human Rights Assessment 412-1 Human Rights Assessment 412-2 Human Rights Assessment 412-3 management approach Operations that have been subject to human rights reviews or impact assessments SR2018: ETHICS AND COMPLIANCE 21 Employee training on human rights policies or procedures SR2018: PERFORMANCE SUMMARY 23 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening https://www.sabic.com/en/about/code-of-ethics On a 3 year cycle, each SABIC business unit and function completes a business risk review, which includes a review of all policies in our Code of Ethics, including our Fair Employment Practices Policy. In addition to our internal reviews, we are sometimes subject to review by our customers as well. For example, in 2018, an external Together for Sustainability audit was completed at our methanol production facility in KSA and our labor and human rights practices were reviewed as part of that assessment. SABIC s procurement contracts contain language on our fair employment practices policy and suppliers are asked to adhere to our Code of Conduct. SABIC codes and policies are included in all our business dealings, including acquisitions and joint ventures. GRI 412: LOCAL COMMUNITIES Boundary SR2018: MATERIALITY Page 09 of 11
Local Communities 413-1 SR2018: SOCIAL IMPACTS AND COMMUNITY RELATIONSHIPS: OUR APPROACH AND OUR PERFORMANCE 80-81 management approach Operations with local community engagement, impact assessments, and development programs SR2018: SOCIAL IMPACTS AND COMMUNITY RELATIONSHIPS: CSR PRIORITY AREA HIGHLIGHTS SR2018: SCIENCE AND TECHNOLOGY EDUCATION SR2018: ENVIRONMENTAL PROTECTION SR2018: HEALTH AND WELLNESS SR2018: WATER AND SUSTAINABLE AGRICULTURE 80-86 GRI 414: SUPPLIER SOCIAL ASSESSMENT Supplier Social Assessment 414-1 Supplier Social Assessment 414-2 Boundary SR2018: MATERIALITY SR2018: SUPPLY CHAIN AND PROCUREMENT: OUR APPROACH AND OUR PERFORMANCE 70-71 management approach New suppliers that were screened using social criteria Negative social impacts in the supply chain and actions taken SR2018: SUSTAINABLE PROCUREMENT: GLOBAL SUPPLIER DUE DILIGENCE PROGRAM 76 SR2018: SUSTAINABLE PROCUREMENT: GLOBAL SUPPLIER DUE DILIGENCE PROGRAM 76 GRI 415: PUBLIC POLICY Boundary SR2018: MATERIALITY SR2018: MATERIALITY SR2018: SUSTAINABILITY GOVERNANCE AR2018: ENABLING SAUDI VISION 2030 22 18-19 management approach Public Policy 415-1 Political contributions SABIC has not made any political contributions in 2018. GRI 416: CUSTOMER HEALTH AND SAFETY Customer Health and Safety 416-1 Boundary SR2018: MATERIALITY SR2018: EHSS AND PRODUCT SAFETY: GOVERNANCE AND OPERATING RHYTHM 48 management approach Assessment of the health and safety impacts of product and service categories SR2018: PRODUCT STEWARDSHIP 54-56 SABIC has a comprehensive program to evaluate health and safety of our products and are making continuous progress in this area but does not currently have a specific metric to report externally. Page 10 of 11
Customer Health and Safety 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services SR2018: PRODUCT STEWARDSHIP 54-56 GRI 417: MARKETING AND LABELING Marketing and Labeling 417-1 Marketing and Labeling 417-2 Boundary SR2018: MATERIALITY SR2018: EHSS AND PRODUCT SAFETY: GOVERNANCE AND OPERATING RHYTHM 48 management approach Requirements for product and service information and labeling SR2018: PRODUCT STEWARDSHIP 54-56 Incidents of non-compliance concerning product and service information and labeling SR2018: PRODUCT STEWARDSHIP 54-56 GRI 417: SOCIOECONOMIC COMPLIANCE Socioeconomic Compliance 419-1 Boundary SR2018: MATERIALITY SR2018: MATERIALITY SR2018: SUSTAINABILITY GOVERNANCE AR2018: COMPLIANCE AND RISK MANAGEMENT 22 56-57 management approach Non-compliance with laws and regulations in the social and economic area SABIC has not had significant non-compliance with laws / regulations in 2018 that resulted in a financially material impact. Page 11 of 11